Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wildhorse Company uses a perpetual inventory system. The company began 2 0 2 4 with 1 , 3 0 0 lamps in inventory at a

Wildhorse Company uses a perpetual inventory system. The company began 2024 with 1,300 lamps in inventory at a cost of $13 per unit. During 2024, Wildhorse had the following purchases and sales of lamps:
Feb 15: Purchased 2600 units @ $19 per unit
April 24: Sold 3250 units @ $31 per unit
June 6: Purchased 4550 units @ $24 per unit
Oct 18: Sold 2600 units @ $34 per unit
Dec 4: Purchased 1820 units @ $27 per unit
All purchases and sales are on account.
a) Calculate the cost of goods sold and ending inventory using weighted average. (Round the weighted average cost per unit to 2 decimal places, eg.5.27 and final answers to 0 decimal places, eg.5,275)
b) Prepare journal entries to record the June 6 purchase and the October 18 sale.
c) Calculate gross profit for the year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions